Ross McKnight

All eyes will be on the Federal Reserve in the months ahead. Any further interest rate cuts are likely to follow more strain in the labour market, as inflation is once again rising. It is difficult to see how markets would respond positively to such a scenario, unless they begin to look ahead to 2026. The US economy is expected to improve next year, supported by looser fiscal and monetary policy as well as deregulation. Closer to home, the upcoming UK budget and the uncertainty surrounding it are likely to weigh on stock market performance, following a strong run through most of 2025. We have been gradually taking profits on our UK overweight throughout the year and may do so again.

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